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Bengal Energy Provides Update on Production Testing at Cuisinier Oil Field Production Tests Exceed Initial Estimates in Australia’s Cooper Basin

November 6, 2012

CALGARY, Nov. 6, 2012 /CNW/ – Bengal Energy Ltd. (TSX: BNG) (“Bengal” or the “Company”) is pleased to report that it has been
advised by the operator of the Cuisinier Oil Field of initial
production testing results from recently drilled  wells. The Cuisinier
Oil Field is located within the boundaries of the Barta sub-Block of
Authority to Prospect (“ATP“) 752P in the Cooper/Eromanga Basins in the State of Queensland,
Australia. Bengal has a 25% working interest in the Cuisinier Oil Field
and the Barta sub-Block of ATP 752P.

Combined new oil production from three of the four recently drilled and
completed wells, all of which targeted the Murta formation, amounts to
approximately 1,800 barrels of oil per day (bopd) (net 450 bopd to
Bengal) which exceeds the initially estimated volumes. Additional
incremental production is expected in the near future when the
Cuisinier North 1 and Barta North 1 wells are commissioned. All of
these wells will be produced under recently issued Extended Production
Tests (“EPT’s”). Oil from these new wells will be trucked to a sales
point under the current production system. Current Cuisinier facility
capacity is limited to approximately 1,300 barrels per day (net 325
bopd to Bengal) provided that two triple tanker loads are available
daily.

Facilities upgrade and pipeline connection from Cuisinier to the Cook
Oil Field facility is forecasted to be completed by the second quarter
of 2013 subject to receipt of the necessary approvals. These steps will
enable full field production (currently 8 wells) from Cuisinier upon
receipt of the Petroleum Lease for the Cuisinier oil field. The
existing Cuisinier 1, 2 and 3 wells have been shut-in awaiting grant of
a Petroleum Lease (“PL”), which is anticipated by the second quarter of
2013. Granting of the PL will allow all 8 Cuisinier wells to produce.

In addition, the previously announced 224 square kilometer 3D seismic
program has commenced and will evaluate the area to the north of the
Cuisinier pool for additional prospectivity in both the Murta and
deeper zones.

“We’re pleased not only with the success of the Cuisinier completion
program, but also with the higher than estimated initial production
rates from the new wells.” said Chayan Chakrabarty, President & CEO of
Bengal.

The Cuisinier structure has been interpreted from 3D seismic data by
Bengal to be one of several culminations in the area. The planned
additional appraisal drilling will determine the ultimate size of the
structure and the extent of the Murta reservoirs.

Bengal believes that the Cuisinier structure has the potential to host
oil in additional reservoirs. The adjacent Cook Oil Field produces oil
from the prolific Hutton reservoir. Cuisinier wells have also had oil
shows in the Birkhead and Triassic targets. Results in the
Cuisinier-Cook area show that significant oil accumulations can be
found in different reservoirs in this region.

Bengal has interests in four other permit areas in the Cooper Basin.

About Bengal

Bengal Energy Ltd. is an international junior oil and gas exploration
and production company with assets in India and Australia. The company
is committed to growing shareholder value through international
exploration, production and acquisitions. Bengal trades on the TSX
under the symbol BNG.

Additional information is available at www.bengalenergy.ca

Forward-Looking Statements

This news release contains certain forward-looking statements or
information (“forward-looking statements”) as defined by applicable
securities laws that involve substantial known and unknown risks and
uncertainties, many of which are beyond Bengal’s control. These
statements relate to future events or our future performance. All
statements other than statements of historical fact may be forward
looking statements. The use of any of the words “plan”, “expect”,
“prospective”, “project”, “intend”, “believe”, “should”, “anticipate”,
“estimate”, or other similar words or statements that certain events
“may” or “will” occur are intended to identify forward-looking
statements.  The projections, estimates and beliefs contained in such
forward looking statements are based on management’s estimates,
opinions, and assumptions at the time the statements were made,
including assumptions relating to: the timing and execution of capital
plans for ATP 752P where Bengal is not the operator; the impact of
economic conditions in North America, Australia, India and globally;
industry conditions; changes in laws and regulations including, without
limitation, the adoption of new environmental laws and regulations and
changes in how they are interpreted and enforced;  increased
competition; the availability of qualified operating or management
personnel; fluctuations in commodity prices, foreign exchange or
interest rates; stock market volatility and fluctuations in market
valuations of companies with respect to announced transactions and the
final valuations thereof; results of completion, perforation and
testing operations; and the ability to obtain required approvals and
extensions from regulatory authorities. We believe the expectations
reflected in those forward-looking statements are reasonable but, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them
do so, what benefits that Bengal will derive from them. As such, undue
reliance should not be placed on forward-looking statements. 
Forward-looking statements contained herein include, but are not
limited to, statements regarding: future oil production rates, timing
of oil production coming on stream at Cuisinier, transportation
methods, timing of completion and transportation and other facilities
construction, receipt of regulatory approvals, granting of petroleum
leases and licenses, drilling plans, capital expenditure requirements,
and the approximate size and nature of seismically defined features.
The forward looking statements contained herein are subject to numerous
known and unknown risks and uncertainties that may cause Bengal’s
actual financial results, performance or achievement in future periods
to differ materially from those expressed in, or implied by, these
forward-looking statements, including but not limited to, risks
associated with:  failure to secure required equipment and personnel;
access to capital; changes in general global economic conditions
including, without limitations, the economic conditions in North
America, Australia, India; increased competition; the availability of
qualified operating or management personnel; fluctuations in commodity
prices, foreign exchange or interest rates; changes in laws and
regulations including, without limitation, the adoption of new
environmental and tax laws and regulations and changes in how they are
interpreted and enforced; the results of exploration and development
drilling and related activities; the ability to access sufficient
capital from internal and external sources; and stock market
volatility. Readers are encouraged to review the material risks
discussed in Bengal’s Annual Information Form under the heading “Risk
Factors” and in Bengal’s annual MD&A under the heading “Risk Factors”.
The Company cautions that the foregoing list of assumptions, risks and
uncertainties is not exhaustive. The forward-looking statements
contained in this news release speak only as of the date hereof and
Bengal does not assume any obligation to publicly update or revise them
to reflect new events or circumstances, except as may be required
pursuant to applicable securities laws.

SOURCE Bengal Energy Ltd.


Source: PR Newswire